Complete Overview to Contractor Payments

Contractor payments move through several stages. Understanding the difference between payment creation, invoice funding, payout processing, and contractor withdrawal can help prevent delays and duplicate actions.

Before the first payment

Before paying a contractor:

• Confirm that the contractor has completed all required onboarding steps and is Active.
• Review the agreement, compensation, currency, rate type, and payment frequency.
• Confirm that any required timesheets, milestones, expenses, or additional payment requests have been submitted and approved.

Create or review the payment

How a payment becomes available depends on the contractor’s payment structure.

• Recurring payments: Draft payments are generated automatically according to the payment frequency configured in the contractor’s profile.
• Pay-as-you-go payments: The client creates the payment manually when the contractor is ready to be paid.
• Hourly payments: The contractor submits a timesheet. Once the timesheet is approved, the related payment becomes available for processing.
• Milestone payments: The contractor completes the milestone. Once the milestone is approved, the related payment becomes available for processing.
• Additional payments: Approved additional payment requests become available with the contractor’s payment items.

Before generating an invoice, review:

• Contractor name.
• Payment period.
• Amount and currency.
• Approved timesheets or milestones.
• Additional payment items.
• Any expenses that will be added to the invoice.

Generate the invoice

When the payment details are correct:

• Go to Pay Contractor.
• Review the available payments.
• Select the payments you are ready to process.
• Generate the invoice.
• Review the total amount due before funding it.

Do not generate another payment or invoice if an existing item has an unclear status. Review the original item or contact Contractor Success first.

Understand the invoice types

After the invoice is generated, two related documents may be available:

• Client aggregated invoice: Shows the total amount the client must fund, including contractor payments and any applicable RemoFirst or payment-provider charges.
• Contractor sub-invoice: Records the payment associated with the contractor’s work.

The documents may contain related amounts, but they serve different accounting purposes and are not duplicates.

Fund the invoice

Use the beneficiary details and payment instructions displayed on the current invoice or in the platform.

Include the payment reference (Payment request ID) exactly as provided. A missing or incorrect reference may delay the reconciliation of the funds and the contractor’s payout.

Do not reuse bank details from a previous invoice without confirming that they are still current.

Processing and payout

After RemoFirst receives and successfully reconciles the client’s funds, the contractor payout enters processing.

Processing time may depend on:

• Funding and reconciliation.
• Required compliance reviews.
• Payment provider processing.
• Payment currency and destination.
• Local banking hours and public holidays.
• Additional information requested from the contractor.

Contractor withdrawal

The contractor receives the payout through their configured withdrawal method.

The contractor should ensure that their withdrawal details are accurate and that the account holder’s name matches their verified identity information. Incorrect or incomplete details may cause the payout to be delayed, rejected, or returned.

Need assistance?

Chat with us or use the support option in the RemoFirst Help Center and select Contractor Success.

Include the company name, contractor name, country, payment or invoice reference, amount, currency, and a clear explanation of the assistance you need.